They also threw in another 5 million shares, up from the previous offering estimate of 30 million shares. Under pressure from regulators, Groupon re-filed in August to instead use only standard accounting procedures. As a result, the operating profits that Groupon cited in its first filing became operating losses. Then, in late September, Groupon revised its reported revenue to "correct for an error" -- namely, including in its revenue the cash it has to hand back to merchants for their share of the coupons Groupon sells.
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Over the last four months, the company, which has million subscribers across 45 countries, has faced growing scrutiny from the Securities and Exchange Commission for its newfangled accounting practices, which have led to substantial investor fears. As of May, for instance, data collected by Yipit, which monitors the daily deal industry, reported that there were nearly daily deal companies operating in the U. Who can blame them? Groupon holds no patents and there are very few barriers to entry.
The outlook is bleak. In it, Mason writes "We aggressively invest in growth We are always reinventing ourselves We are unusual and we like it that way," adding "Life is too short to be a boring company.
The SEC demanded the company revise the bizarre accounting metric, and Henry Blodget, editor of Business Insider, applauded the decision, declaring , "Chalk one up for the good guys in the war against bullshit accounting.
Many were quick to criticize Mason for this stunt, and his reputation took yet another blow. September More red flags. October 7: After several revisions, Groupon revised its S-1 yet again. In the most recent prospectus, Groupon clarified its new accounting metric, called "gross billings," which is essentially the total revenue the company collects from consumers before remunerating vendors.
October Groupon will begin meeting with investors to kick off its IPO road show.
Groupon IPO prices at $20 a share
Over the last four months, the company, which has million subscribers across 45 countries, has faced growing scrutiny from the Securities and Exchange Commission for its newfangled accounting practices, which have led to substantial investor fears. As of May, for instance, data collected by Yipit, which monitors the daily deal industry, reported that there were nearly daily deal companies operating in the U. Who can blame them? Groupon holds no patents and there are very few barriers to entry. The outlook is bleak.
Groupon IPO prospectus
Many of our current and potential competitors have longer operating histories, significantly greater financial, marketing and other resources and larger customer bases than we do. These factors may allow our competitors to benefit from their existing customer base with lower customer acquisition costs or to respond more quickly than we can to new or emerging technologies and changes in consumer habits. These competitors may engage in more extensive research and development efforts, undertake more far-reaching marketing campaigns and adopt more aggressive pricing policies, which may allow them to build larger customer bases or generate revenue from their customer bases more effectively than we do. Our competitors may offer deals that Table of Contents are similar to the deals we offer or that achieve greater market acceptance than the deals we offer. This could attract customers away from our websites and applications, reduce our market share and adversely impact our gross margin. We also have seen that some competitors will accept lower margins, or negative margins, to attract attention and acquire new customers. If competitors engage in group buying initiatives in which merchants receive a higher percentage of the revenue than we currently offer, we may be forced to pay a higher percentage of the gross proceeds from each Groupon sold than we currently offer, which may reduce our revenue.
Groupon spikes 31% in IPO
Groupon went public 5 years ago. Will a buyer come in the next 5?